PK Online, the Gurgaon based digital content company which is trying to raise Rs 100 cr to fund its expansion, clocked Rs 26 cr in revenues in FY14 and has plans to touch Rs 50 cr next year, the company has said.
“We are in talks with investors to raise funds,” said Viraj Malik, Managing Director and Chief Executive Officer, PK Online but he did not comment any further.
The company is also planning to take the headcount up to 300 in the next 2 years. The money it raises will be used to fund its online media play.
The Economic Times reported last week that the 6 year old company is in talks with Nirvana Venture Advisors and Bertelsmann India Investments to raise the money at a post money valuation of Rs 400 cr.
PK Online’s HelloTv claims to have 1 million monthly users. The mobile video service has over 30 curated content channels, video on demand and over 100 broadcast channels. It also runs ad supported content channels like Cinecurry on YouTube. In February, the channel clocked 51 million views.
Here is a quick Q&A with Malik
How are the average revenues per user in India for HelloTv?
Arpu of Netflix in the United States is $8. Whereas in India it is 50 cents. We have a long way to go to increase Arpus.
How do you see the network neutrality debate?
For telcos, we are an extremely important part now. Players like us are extremely important for the data ecosystem to grow adoption. Vodafone, for instance, has created a more workable revenue share regime because they see data growing.
With the 2nd consent order by Trai, your revenues must have taken a hit?
We’ve always followed 2nd consent so it was not a problem for us.
Some of the video players like iStream have shut down..
The idea is to manage the cost structure effectively. The biggest cost in this business is the cost of content. The most expensive genre is sports and we’ve stayed away from it so far. You need to keep investments in line with revenue expectation or have a lot of money on the balance sheet.